Following the Commission’s proposal for a mid-term revision on the EU’s long-term budget (multiannual financial framework, MFF) the full house debate on the proposal of the Committee on Budgets to demand an extra €10 billion for 2024-2027. MEPs want to boost areas linked to external challenges, especially the Russian war against Ukraine and growing migration issues, the EU’s strategic autonomy, and enhance the EU’s crisis-response capabilities. Opening statements by Pascual NAVARRO RÍOS, Spanish Secretary of State for the European Union, Jan OLBRYCHT (EPP, PL) and by Margarida MARQUES (S&D, PT), Rapporteurs and by Johannes HAHN, European Commissioner for Budget and Administration

statement

Strasbourg

plenary session

HAHN, Johannes (AT, EC)

OLBRYCHT, Jan (EPP, PL)

Multiannual financial framework 2021-2027 (T)

MARQUES, Margarida (S&D, PT)

NAVARRO RÍOS, Pascual Ignacio

Mid-term revision of the MFF 2021-2027: opening statements by Pascual NAVARRO RÍOS, Spanish Secretary of State for the European Union, Jan OLBRYCHT (EPP, PL) and by Margarida MARQUES (S&D, PT), Rapporteurs and by Johannes HAHN, European Commissioner

https://api.multimedia.europarl.europa.eu/documents/20125/72364261/1695989476260_I246168Chapters%5BSD-EN%5D.srt

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur President, Commissioner. Let me remind you. Today, the Parliament will be voting on its position in respect of the revision of the Multiannual Financial Framework 2021-2027. This should be an important reminder to us of that debate that's been going on for many years in the EU.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur Can we actually see and plan the needs of the European budget over a seven year period? Are we ready for the unforeseen surprises for crises? Shouldn't a budget that lasts for seven years automatically be made in such a way that it can be changed and revised? Shouldn't it be more flexible so that it allows us the opportunity to react right from the word go?

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur The European Parliament has said that the amount of money set aside for 2021-2027 was not enough to face any crisis that we might be hit by. The Commission said the same thing when it set out the needs. The budget was decided at a level much lower than the needs that had been laid out.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur However, a decision was to take to approve the MFF with a revision. We said a revision wasn't enough, we'd have to change the budget because then, we had COVID, the war in Ukraine, unforeseen events. And so we asked the question, was the budget enough? Should we change it?

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur The governments initially said that there was going to be no revision of the MFF. Luckily, the European Commission did draft a proposal to change the MFF, something that we were talking about in 2022. The Commission prepared that change. And in general terms, the Parliament agrees with those terms.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur There is a list of priority activities that more money would be needed for Ukraine, reinforcing innovation, competitiveness on the global markets, putting more money towards immigration. Also, though, is the question of making the budget more flexible so that we can react to unforeseen events.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur The Parliament is saying that we agree with the Commission's proposal, but we feel it should be reinforced even further. That's why the European Parliament's proposal suggests a further 10 billion. It's a symbolic sum. We could break it down into various specifics. But what we want to do is to show that there are priority areas that really need reinforcement.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur But time is an issue, and that's why we're doing it today. We feel that the council has to take a decision quickly because the money that's set aside for Ukraine will run out by the end of the year. We have to prepare a budget for 2024. That's why the Parliament is debating this today.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur We're saying this is our proposal and we expect rapid action from the Council as to how to change the MFF, how to find the additional money for the second part of the MFF period. We have to face up to these new challenges, but also we have to pay interest on debts.

(SOUNDITE, Portoguese) Jan OLBRYCHT (EPP, PL), co-rapporteur So, the Parliament's position then is as follows. We're not asking for more money, we want to support the important priorities that the EU has set. We're showing how they can be met and we're calling on the Council to act rapidly. Thank you very much.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, Thank you very much. Madam President, Minister, Commissioner. At a time of crisis, whether that's because of health, economics or war, the answer is always more Europe and not less. That response puts people, families and businesses in the middle of things. And the Recovery Funds has saved the lives of thousands of people in Europe.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, The European Parliament called for it in December, the European Commission proposed it in June and now we are voting on the Multi Annual Budget for Europe, that takes us to the end of 2027. This is fundamental. There are several key concerns here.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, Firstly, to continue to support Ukraine and the people of Ukraine, inside and outside Ukraine, to create the appropriate budget to mobilise and then international aid. And at the same time, we need to palliate the economic and social impact of the war on the lives of Europeans. Europeans can't simply watch as interest rise day by day with the impact that has on the budget of households.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, Second, we need to mobilise more resources to support the citizens of third countries who are trying to reach the continent of Europe as a lifeline from the situation in which they were previously.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, And then, third, we need to provide more resources to help national governments manage natural disasters such as floods or other issues. We need for us to step up the EU strategic autonomy. That means we have to set up the step programme as the first step.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, Then we need to create a deep, clean and green biotechnologies, we need to maximise research and technological development in Europe. We must support green industrialisation and we must also, ensure that we create better job opportunities, better opportunities for young people, thus building a fair, equal cohesion, cohesive union.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, First, we need to ensure that the debt burden arising from Next Generation EU will not weigh heavily on Europe's policies and programmes. Sixth, we need to set up a permanent mechanism instrument to deal with crises that are occurring more quickly and becoming increasingly complex.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, We can't keep putting in place one off measures without that wrecking our investment in a climate and digital transition. We need permanent solutions. We've got to learn from what we have done in the past to respond to various crises, such as when we set up the recovery fund or the shuttle program.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, Seventh, we must protect the identity and scale of Cohesion policy. We shouldn't challenge the so-called national envelopes here. We believe that these are realistic proposals. We know that these instruments must be subject to institutional reforms.

SOUNDBITE (Portuguese), Margarida MARQUES (S&D, PT), Rapporteur, But, they also set in place a new architecture for the EU budget. You can't have the same budget either on the revenue side or on the spending side in a Europe of 2027, compared to a Europe of 2030 or a Europe of 2035. Finally, by way of a conclusion, I would like to thank the co-rapporteur, Mr. OLBRYCHT, and all the teams, the Shadow Rapporteurs and the Secretariat of the Budget Committee.

SOUNDBITE (Spanish), Pascual Ignacio NAVARRO RÍOS, Spanish Secretary of State for the European Union, President. Ladies and gentlemen, Commissioners. As you know, on the 20th of June, the Commission put forward its proposal for a revision of the MFF. The Council has been working very hard on this text with a view to concluding the negotiations before the end of the year.

SOUNDBITE (Spanish), Pascual Ignacio NAVARRO RÍOS, Spanish Secretary of State for the European Union, As is always the case when it comes to the Multiannual Financial Framework, some points of this proposal will require guidance from the highest political level. And therefore, the President of the European Council has suggested that we add in a debate on the MFF to the agenda of the next European Council on the 26th and 27th of October.

SOUNDBITE (Spanish), Pascual Ignacio NAVARRO RÍOS, Spanish Secretary of State for the European Union, The Presidency is working very hard on these negotiations, and we've already seen debates. Since 2020, we have seen unprecedented challenges and, of course, this proposed revision refers to all of this. We have to try to reconcile these changes with national budgets.

SOUNDBITE (Spanish), Pascual Ignacio NAVARRO RÍOS, Spanish Secretary of State for the European Union, The Presidency is doing everything it can to ensure that this is concluded as quickly as possible and is willing to work with a spirit of constructive cooperation with the European Parliament in order to achieve this. I would like to thank you in advance for the contributions that you will all be making in this Chamber here today. Thank you.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Madam Chair, Honourable Members, it's a good first day. I would like to thank the European Parliament, its President, and especially the co-Rappoerteurs for this report for the work done so far, and speediness that Parliament has shown in its work as indeed time is passing. I can only stress again the importance of having the MFF revision in place by the 1st of January next year, which is also supported by the European Parliament.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Failure to do so would mean that we would not be able to support Ukraine in a lasting manner to cover the most pressing needs and important reforms. We would need to be able to react effectively to the recent natural crisis and emergencies that have affected our countries.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, The economic and geopolitical context has dramatically changed since 2020. Within its limits, the Union Budget has powered a strong EU response. As a result, the existing budgetary flexibility under the MMF is largely depleted. This hinders the EU credibility and the ability to act swiftly and urgently.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, That is why we came forward with a targeted proposal of the MFF last June. I welcome the fact that the European Parliament's report concludes with the priorities identified by the Commission. A structural solution to support Ukraine until 2027, while the new Ukraine Facility, an instrument which will support Ukraine's recovery, modernisation, reforms, accession path, well-long term plan, but also catering for short term needs.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Further the situation in Lampedusa, the fallout from the Russian war of aggression and challenges at our borders demonstrate that migration is a huge European challenge that requires a European response.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, We must provide the means to address the most pressing needs resulting from the current situation, ensuring a swift agreement and implementation of the Pact for Migration and Asylum. The impact of the Russian war of aggression on Ukraine calls for strengthening partnerships with third countries.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Supporting our close partners, as well as replenishing the Neighbourhood and Development Cooperation Instrument, cushion to respond to future crises - hence our proposals to increase heading 4 and heading 6. The one is for migration and borders, number six for neighbours and external.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, The multiplication of natural disasters and numerous humanitarian crises both in the Union and outside, which we have experienced this summer, highlights the importance of our emergency instruments. The initial allocations have been more than exhausted in the past two years needs remain high and will continue to do so for the remainder of them.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, It's urgent to reinforce the solidarity and emergency reserve and the flexibility instrument. It's also time to foster our strategic autonomy and competitiveness. Beyond key political priorities, MMF also requires some adjustments to respect the commitments already made. It was already mentioned the other line. This would reflect the uncertain nature of financing costs. And then it's about the resources of the European Public Administration, which are under pressure due to due to the inflation.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, The Commission proposal is targeted and focuses on the most pressing needs. As such, it should be considered as a package. So, once again, we are ready to support. I am grateful for the Council to try to reach an agreement as fast as possible. Thank you very much.